Let’s make figuring out tax easier, urges Treasury

By Simon Thompson

The day of reckoning has come for making tax calculation easier as the government has announced plans to combine national insurance and income tax.
The aim is to move to a simpler, more straightforward method of tax calculation.
The Treasury believes too many people find working out how much tax to pay too complicated and wants ideas from taxpayers and professionals about how to make the process clearer.
Two consultation papers have been issued laying out the process and calling for help.
One covers modernising the tax system, while the other considers how to combine PAYE and NICs.
The Treasury wants employers, tax and payroll professionals to launch working groups to come up with a better tax system.
Taxpayers are also invited to give their views directly to the Treasury about:
• What taxpayers should know about the tax they pay
• What areas of the personal tax system pose most problems
• How technology can help taxpayers better access and understand their tax position
Exchequer Secretary David Gauke said: "For many, the tax line on their pay slip is the only time they see just how much they're paying in tax, but the government doesn't think that's good enough. We want to make tax more transparent and we want people to be more engaged with their own tax affairs.
"We plan to lift the lid on tax so that people understand how much they are paying, what their overall tax rate is, and what they should be paying, in the same way that the government has lifted the lid on what they are paying for.
"We are also exploring ways in which we could integrate the operation of income tax and NICs, with benefits for employers and employees. The government will be working in partnership with external stakeholders to identify options and will report on progress at Budget 2012.
"Our vision is to transform the customer experience of the personal tax system. The documents published today set the stage for the ideas and innovations that will realise that ambition."

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